Explain and apply empirical Bayesian estimation in the nonparametric and semiparametric cases.
Free SOA Exam ASTAM (Advanced Short-Term Actuarial Mathematics) lesson in Credibility. 14 min read, ~2,151 words.
Nonparametric EB estimates EPV and VHM directly from data with no assumption on the conditional distribution. Equal sample sizes: is the pooled within-group variance with denominator; is the between-group variance minus. Bühlmann-Straub (unequal exposures ) replaces simple means with exposure-weighted means and gives each policyholder. Bühlmann-Straub uses divisor, not.
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 5c
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